THE ANATOMY OF INSURANCE FRAUDS IN INDIA: PREVENTION AND DETECTION

AUTHORS – MS. JOTHI POORNA S* & MS. T. VAISHALI **, LLM SCHOLAR* & ASSISTANT PROFESSOR OF LAW** AT THE TAMILNADU DR. AMBEDKAR LAW UNIVERSITY (SOEL), CHENNAI

BEST CITATION – MS. JOTHI POORNA S & MS. T. VAISHALI, THE ANATOMY OF INSURANCE FRAUDS IN INDIA: PREVENTION AND DETECTION, INDIAN JOURNAL OF LEGAL REVIEW (IJLR), 4 (4) OF 2024, PG. 863-870, APIS – 3920 – 0001 & ISSN – 2583-2344.

ABSTRACT

The insurance sector plays an important role as a financial safeguard for the economic stability of individuals and businesses. It provides a blanket protection to businesses and events offering financial relief and security in case of unforeseen events. Over the years the Indian insurance sector has witnessed substantial growth, with an increasing number of individuals and entities seeking coverage for life, property, health, and more. However, with growth comes challenges insurance fraud has emerged as a critical issue in the insurance sector leading to significant financial losses and breach of trust between the insurers and policyholders. The lack of a robust verification process, comprehensive training, and awareness programs are key attributes of insurance fraud. The regulatory framework in India spearheaded by the Insurance Regulatory and Development Authority of India (IRDAI) has taken proactive measures to address these challenges but despite these efforts, the dynamic nature of insurance fraud demands continuous innovation and prevention strategies. As the insurance sector evolves it should also be able to adopt recent trends to combat the ongoing frauds if not addressed soon it will lead to a cycle of distrust and inefficiency between the insurers and policyholders which can be challenging to break. This article analyses the various forms of insurance fraud rampant in India and seeks to shed light on effective strategies for prevention and detection.

Keywords: Insurance fraud, strategies, detection, prevention, regulatory framework.